The Independent Community Bankers of America (ICBA) criticized the Office of the Comptroller of the Currency’s (OCC) official approval of the Coinbase trust, warning that it could put consumers at risk.
In a words presented this week, the advocacy group, which represents thousands of organizations in the area focused on money across the US, criticized the work Coinbase failed to comply with the rules and regulations and complained about risk management, profits, and opportunities to manage the crypto industry.
“Today’s approval of Coinbase’s trust charter application is a serious mistake that will only put US consumers at risk,” said Rebeca Romero Rainey, President and CEO of ICBA.
This is not the first time ICBA has opposed Coinbase’s plan to create a national bank. Last November, the group presented a words encourage the OCC to refuse to use Coinbase, or, at least, require disclosure of information and public investigation.
Despite their best efforts, the OCC given an official license with a crypto company.
“Coinbase is not a commercial bank. We don’t take retail deposits. We don’t engage with small banks,” Coinbase’s Greg Tusar said.
ICBA’s opposition is not entirely surprising.
After the OCC approved requests from crypto companies such as Ripple and Circle, ICBA joined other major US banking trade groups, including the American Bankers Association (ABA), in signing a letter urging the OCC to suspend pending national bank complaints.
According to ICBA, the OCC is exceeding its jurisdiction under Interpretive Letter 1176. The group said that fintech companies are violating all banking regulations while obtaining similar profits, which can harm consumers and create systemic risks.
This is intensifying the ongoing conflict between traditional lenders and digital asset companies, who are still opposed to the CLARITY Act’s provisions on stablecoin yields. Banking companies fear that such yields could take money away from traditional deposits.
Following initial disagreements on the bill that led to the cancellation of the January committee meeting, progress resumed in late March when Senators Thom Tillis and Angela Alsobrooks negotiated a compromise, and reached an agreement with the White House.
Coinbase chief legal officer Paul Grewal told FOX Business this week that policymakers are “very close” to reaching an agreement on the CLARITY Act.
He said the bill could move forward soon, with a Senate Banking Committee hearing likely in the next few weeks, followed by a vote in the Senate.
